Aviva announces new flexible repayment options to Equity Release

Aviva has announced significant enhancements to its lifetime mortgage proposition, making this increasingly popular form of funding in later life more flexible for all eligible customers. 

  • Unlimited number of voluntary repayments
  • “One-year rule” no longer applies on repayments and further borrowing
  • Minimum payment reduced to £50
  • Available to all customers who applied for their lifetime mortgage on or after 28th April 2014

These new enhancements, which come into effect from 8th November, include:

Unlimited number of voluntary repayments

Customers will be able to make an unlimited number of payments, and are able to repay up to 10% in total of their initial loan per year (and further borrowing if applicable). This means they can manage their loan amount on a day-to-day basis. 

Time restrictions lifted

There are no longer any time restrictions on repayments – customers could, if wanted, make a repayment as soon as the day after completion, and further borrowing or releases is not time-constrained by any repayments made.*

Minimum payment reduced

The minimum repayment has been reduced to £50, making repayments an option in day-to-day budgeting. 

Accessing reserves and additional borrowing

Access to reserves is possible at any time, and customers can now make an unlimited number of requests for additional borrowing. The minimum sum accessible from the reserve is £2,000, and the minimum for additional borrowing.is £5,000. Customers are able to access their reserve the day after completion via a phone call, and the reserve funds can be in their bank account the same day, or on a specific day up to 14 days in advance.

Greg Neilson, Managing Director, Retirement, at Aviva, commented:

“I am delighted to announce these enhancements to our lifetime mortgage proposition. With these new features, customers can now take advantage of increased flexibility to make managing their finances in retirement even simpler.

"We know that people’s circumstances can change, and now customers have the security of knowing that they have a more flexible range of options available to them, whether they need to repay more often than planned, or borrow more to tide them over unforeseen events."

“In addition, these new features will be available to all customers who applied for their lifetime mortgage on or after 28th April 2014, so that as many people as possible can benefit from the ability to manage their retirement income more flexibly.

“Accessing property wealth is a vital part of people’s planning for their life in retirement, and it has never been more popular. By introducing these enhancements we are creating a lifetime mortgage proposition that, in tandem with other sources of retirement income, increases customers’ options and choices in effectively managing their assets.”  

*Previously, Terms and Conditions applied a ‘one year rule’ prohibiting repayments within one year of the initial loan being taken out, or one year of further borrowing or releasing any reserve. Additionally, customers were unable to take further borrowing within a year of any repayments.

- ENDS -

Media Enquiries:

Melissa Loughran

Senior Media Relations Manager

Notes to editors:

  • We are the UK's leading diversified insurer and we operate in the UK, Ireland and Canada. We also have international investments in India and China.
  • We help our 19.2 million (as at 31 December 2023) customers make the most out of life, plan for the future, and have the confidence that if things go wrong we’ll be there to put it right.
  • We have been taking care of people for more than 325 years, in line with our purpose of being ‘with you today, for a better tomorrow’. In 2023, we paid £25.6 billion in claims and benefits to our customers. 
  • In 2021, we announced our ambition to become Net Zero by 2040, the first major insurance company in the world to do so. We are aiming to have Net Zero carbon emissions from Aviva’s operations and supply chain by 2030. While we are working towards our sustainability ambitions, we recognise that while we have control over Aviva’s operations and influence on our supply chain, when it comes to decarbonising the economy in which we operate and invest, Aviva is one part of a far larger global ecosystem. There are also limits to our ability to influence other organisations and governments. Nevertheless, we remain focused on the task and are committed to playing our part in the collective effort to enable the global transition. Find out more about our climate goals at www.aviva.com/climate-goals and our sustainability ambition and action at www.aviva.com/sustainability
  • Aviva is a Living Wage, Living Pension and Living Hours employer and provides market-leading benefits for our people, including flexible working, paid carers leave and equal parental leave. Find out more at https://www.aviva.com/about-us/our-people/
  • As at 31 December 2023, total Group assets under management at Aviva Group were £376 billion and our estimated Solvency II shareholder capital surplus was £8.8 billion. Our shares are listed on the London Stock Exchange and we are a member of the FTSE 100 index.
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